Sept 9 (Reuters) - GameStop's (GME.N) , opens new tab second-quarter revenue jumped on Tuesday, driven by strong sales in its hardware and collectibles segment as the videogame retailer embraces digital storefronts to battle competition from larger retailers and e-commerce platforms.

Shares of the company, which was at the center of the 2021 meme stock rally, were up about 4% in extended trading.

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Once a dominant force in physical retail, GameStop has seen its market share steadily erode as e-commerce giants such as Amazon became the preferred destination for gaming and general merchandise. In response, the company has pivoted toward digital sales to adapt to the evolving videogame landscape.

GameStop has struck partnerships with videogame publishers to sell exclusive versions of games, collectibles and merchandise to lure consumers to its digital and physical stores. A collectors edition of Take-Two Interactive's (TTWO.O) , opens new tab upcoming "Borderlands 4" is exclusively available at GameStop, alongside accessories such as hats, t-shirts and headphones.

Sales of the company's collectibles business surged 63% during the second quarter.

The company has also benefited from surging popularity for Nintendo's Switch 2 and a strong gaming release slate for this year and the next, which have prompted gamers to lap up aging consoles such as the PlayStation 5 and Xbox Series X and S.

GameStop posted a 31% rise in hardware and accessories sales to $592.1 million during the quarter.

Total revenue increased to $972.2 million, compared with $798.3 million a year ago.

The company has also shut down hundreds of stores to boost profitability, while pivoting to owning and making money on bitcoin positions held on its balance sheets.

It reported net income of $168.6 million during the three months ended August 2, compared with $14.8 million a year ago.

https://www.reuters.com/business/gamestop-revenue-climbs-strong-hardware-collectible-sales-2025-09-09/